Close to Polka Dot (DOT) Critical Zone: Inversion can cause a 180% spike

Polka Dot (DOT) prices fell 4.38% in the past day. According to Coinmarketcap data, when DOT prices fall, only the recent form of assets is highlighted, as shown last week’s loss of 7.99%. However, market analyst Ali Martinez assumes that this downtrend could soon lead to positive things.

Polkadot approaches important support – can Dot keep it at $10.80 and rebound?

Following the intense price volatility that crossed the Crypto Market last week, Polkadot fell below the key support level at $4.47, showing an increase in bear pressure. According to Ali Martinez, Altcoin appears to be heading towards a key support zone at $3.80, which could stop the current decline.

Based on the analysis presented, DOT has undergone a wide range of integrations moving back to parallel channels until July 2023. Therefore, if the current downtrend persists, AltCoin could retest at $3.80, representing the lower boundary of this parallel channel.

According to historical patterns, the Market Bulls are expected to step into this support zone and increase demand to prevent further decline. Martinez explains that if this projection occurs, the polka dot will cost around $6.40, and will be the midpoint of the parallel channel.

Dot investors could expect price increases to rise to around $10.80 due to strong purchase pressure. On the other hand, if Dot Bulls can’t hold a support level of $3.80, Altcoin can slide to $2.30 with a potential price target of around $1.25-$1.45.

Overview of the Polka Dot Market

At the time of pressing, Polka Dots are trading at $4.32, following a decline in daily prices of over 4% as mentioned above. In collaboration, asset trading volume has dropped by half in the last 24 hours and is currently valued at $145.81 million. A decline in prices along with a decline in trade volume could indicate declining sales pressures, offering the possibility of a price reversal as assumed by Ali Martinez.

Looking at the technical indicators on the daily chart, the relative strength index (RSI), which is used to determine excess market conditions, is currently 39 years old, but is facing downwards. This read adds more support for DOT’s predicted bullish rebounds. However, the asset prices are far below the 100-day simple moving average (SMA), suggesting that forecast price gatherings will not occur immediately.

Meanwhile, its market capitalization is $6.72 billion, and Polkadot continues to rank among the 30 largest cryptocurrencies in the world.